DGAP-News: Evotec SE / Key word(s): Annual Results 
EVOTEC SE FISCAL YEAR 2020 RESULTS: GAINING SPEED ON 'THE DATA-DRIVEN R&D AUTOBAHN TO CURES' 
2021-03-25 / 07:00 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
  . VERY STRONG FINANCIAL RESULTS: 12% INCREASE IN GROUP REVENUES BEATING GUIDANCE DESPITE PANDEMIC 
  . UNIQUE INNOVATION PLATFORMS AND INFRASTRUCTURE SUPPORT LONG-TERM GROWTH IN ALL MODALITIES 
  . SOLID BALANCE SHEET, STRONG FOUNDATION FOR NEXT EXPANSION STEPS, ESPECIALLY ALSO FOR JUST - EVOTEC BIOLOGICS 
  . GOOD START AND VERY STRONG OUTLOOK FOR FISCAL YEAR 2021 
 
Hamburg, Germany, 25 March 2021: 
Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809) today reported financial results and 
corporate updates for the fiscal year ended 31 December 2020. 
FINANCIALS REFLECT GREAT PERFORMANCE 
  . Group revenues exceed revenue target - up 12% (+14% at constant fx rates) to EUR 500.9 m (2019: EUR 446.4 m) 
  . Strong performance in base business (+16%) 
  . Adjusted Group EBITDA in line with guidance by EUR 106.6 m (EUR 110.8 m at constant fx rates) (2019: EUR 123.1 m); 
    adjusted EBITDA for EVT Execute shows increase of 6% to EUR 129.3 m in 2020, despite planned loss of Sanofi subsidy. 
  . Unpartnered R&D expenses of EUR 46.4 m (2019: EUR 37.5 m) 
  . Very strong liquidity position with EUR 481.9 m. 
STRONG PERFOMANCE DESPITE ONGOING PANDEMIC 
  . Important clinical trial initiations and significant progress in co-owned pipeline 
  . Milestone achievements within strategic collaborations with Bayer and BMS 
  . New and extended partnerships in e.g. kidney disease, protein degradation, rare diseases, and oncology 
  . Focus on "omics", machine-learning and artificial intelligence platforms in all modalities 
  . Strong year for Just - Evotec Biologics with several new collaborations signed and J.POD^(R) 1 US on track to open 
    in H2 2021; Initiation of J.POD^(R) 2 EU in Toulouse still in H1 2021 
  . Multiple new and extended drug discovery collaborations 
  . Successful step into gene therapy with new gene therapy R&D centre Evotec GT 
  . Good progress of equity-based co-ownership engagements and BRIDGEs 
  . Expansion of alliance with US Department of Defense ("DOD") for Just - Evotec Biologics (after period-end) 
  . Multi-RNA target alliance with Takeda (after period-end) 
CORORATE HIGHLIGHTS 
  . Mubadala Investment Company and Novo Holdings A/S endorse strategy, together investing EUR 250 m through capital 
    increase 
  . Acquisition of land, buildings and full takeover of staff from "Biopark by Sanofi SAS", now "Campus Curie Toulouse" 
    (France) 
  . Expansion of infrastructure for growth in Abingdon (UK), Goettingen (GER); Munich (GER) 
  . Implementation of Action Plan 2025 "The data-driven R&D Autobahn to Cures" 
FINANCIAL GUIDANCE 2021 - CONTINUED STRONG ORGANIC GROWTH 
  . Group revenues expected to be in a range of EUR 550 - 570 m (EUR 565 - 585 m at constant exchange rates) (2020: EUR 500.9 
    m) 
  . Adjusted Group EBITDA expected to be in the range of EUR 105 - 120 m (EUR 115 - 130 m at constant exchange rates) 
    (2020: EUR 106.6 m) 
  . Unpartnered research and development expenses expected to be in a range of EUR 50 - 60 m (2020: EUR 46.4 m) 
Given current global insecurities surrounding the pandemic, a likely negative impact - though less pronounced than in 
2020 - is already estimated within the guidance for revenues and adjusted EBITDA stated above. 
 
FINANCIALS REFLECT STRONG GROWTH 
Key figures of consolidated income statement & segment information 
Evotec SE & subsidiaries 
                                                                                              Evotec Group Evotec Group 
                                           EVT      EVT             Intersegment          Not         2020         2019 
In TEUR                                  Execute Innovate             eliminations    allocated 
External revenues^1)                   373,366  105,723                        -       21,835      500,924      446,437 
Intersegment revenues                  115,776        -                (115,776)            -            -            - 
Gross margin in %                         26.0      8.7                        -            -         25.1         29.8 
 
R&D expenses^2)                        (4,449) (69,926)                   10,430            -     (63,945)     (58,432) 
SG&A expenses                         (61,786) (15,452)                        -            -     (77,238)     (66,546) 
Impairment result (net)                      -  (3,244)                        -            -      (3,244)     (11,919) 
Other operating income (expenses),      16,616   50,591                        -            -       67,207       66,600 
net 
Operating result                        77,329 (28,806)                        -            -       48,523       62,594 
 
Adjusted EBITDA^3)                     129,281 (22,660)                        -            -      106,621      123,143

1) Revenues in the segments consist of revenues from contracts with customers without revenues from recharges as those are not of importance for the management to assess the economic situation of the segments. 2) Thereof unpartnered R&D expenses of EUR 46.4 m 2020 and EUR 37.5 m in 2019 3) Adjusted EBITDA before contingent considerations and excluding impairments on goodwill, other intangible and tangible assets as well as the total non-operating result

In 2020, Evotec's Group revenues increased by 12% to EUR 500.9 m (EUR 507.7 m at constant exchange rates) (2019: EUR 446.4 m), despite the difficulties arising from the global COVID-19 pandemic, which led to delays in milestone payments, and despite the absence of payments from Sanofi for the Toulouse site since April 2020 (loss of EUR 18.0 m). This increase resulted primarily from the growth performance in the base business (+ 16%), and the revenue contribution from Just - Evotec Biologics (including J.POD^(R)) of EUR 39.3 m (2019: EUR 16.1 m, as the company was acquired in July 2019), which strongly accelerated in H2 2020. Revenues from upfront, milestone and licence payments were lower than in the previous year (2019: EUR 39.0 m) at EUR 30.1 m.

In 2020, Evotec focused its unpartnered R&D expenses of EUR 46.4 m (2019: EUR 37.5 m) primarily on initiatives in platform projects, in particular on "omics", artificial intelligence ("AI"), machine learning and data analytics platforms as well as on its cell therapy platform. Its partnered R&D expenses declined to EUR 17.5 m (2019: EUR 20.9 m). This is related to its infectious disease portfolio as R&D expenses are costs fully reimbursed by its partner Sanofi, but also recognised under other operating income, and thus do not negatively affect the operating result or adjusted EBITDA. The split into unpartnered and partnered R&D expenses has only been applied since July 2018 when the infectious diseases portfolio and Lyon site was acquired from Sanofi.

In 2020, the Group's selling, general and administrative ("SG&A") expenses increased by 16% to EUR 77.2 m (2019: EUR 66.5 m). This increase resulted primarily from higher personnel costs arising from the continued expansion in all areas, as well as from start-up costs for the planned launch of J.POD^(R) 1 US in the current year as well as increased IT costs.

Adjusted Group EBITDA declined to EUR 106.6 m in 2020 (EUR 110.8 m at constant exchange rates) (2019: EUR 123.1 m), but were fully in line with guidance. One of the main reasons for the anticipated lower adjusted EBITDA was the planned loss of the subsidy from Sanofi for the Toulouse site as well as planned start-up costs for the commissioning of J.POD^ (R) 1 US. In addition, lower milestone payments (due to pandemic-related delays), higher unpartnered R&D expenses, the loss of R&D tax credits in Italy due to changes in legislation, and the increase in SG&A costs due to expansion also had a negative impact on the adjusted EBITDA and the adjusted EBITDA margin. However, the EVT Execute adjusted EBITDA still shows an increase above 6% to EUR 129.3 m (2019: EUR 122.5 m).

Evotec recorded an operating result for 2020 of EUR 48.5 m (2019: EUR 62.6 m), mainly due to lower gross profit, higher R&D expenses and the loss of R&D tax credits in Italy. Evotec recorded a net result for the financial year 2020 of EUR 6.3 m (2019: EUR 37.2 m).

Evotec ended the year 2020 with a net debt position of EUR 10.0 m versus EUR 143.1 m at the end of 2019. The massive improvement is mainly due to the capital increase by Mubadala Investment Company and Novo Holdings of EUR 250 m in October more than compensating for higher investments related to the ramp up of capacity, for Just - Evotec Biologics and Evotec Innovate.

STRONG PERFOMANCE OF BOTH EVT INNOVATE AND EVT EXECUTE, GREAT START OF JUST - EVOTEC BIOLOGICS

EVT Innovate was characterised in 2020 by multiple important clinical trial initiations, continued milestone income in its strategic partnerships (iPSC neurodegeneration and oncology protein degradation alliances with Bristol Myers Squibb ("BMS"); kidney disease and endometriosis/chronic cough alliances with Bayer) as well as the signing of multiple new partnerships (e.g. Novo Nordisk)

Evotec made significant progress towards building the globally leading precision medicine platform, based on the proprietary industrialised data generation PanOmics technology and a unique AI/ML-driven data analytics software PanHunter. Additionally, Evotec expanded its leading position in iPSC (induced pluripotent stem cells).

(MORE TO FOLLOW) Dow Jones Newswires

March 25, 2021 02:02 ET (06:02 GMT)